- The Australian Dollar to Euro exchange rate today: -0.34% at 0.69544, Best 24hr AUD/EUR rate 0.69903.
- The Pound to Australian Dollar exchange rate today (01/12/16): +0.95pct at 1.70975, Best 24hr GBP/AUD rate 1.71424.
- The Australian Dollar to Pound exchange rate today: -0.95% at 0.58488, Best 24hr AUD/GBP rate 0.59216.
GBP/AUD rises on currency exchange rate markets after Aussie dollar dented by building approvals
The British pound has been boosted dramatically against the Australian Dollar today, in the wake of David Davis suggesting that the UK could pay the EU to stay in the single market.
Given that this goes against the Leave campaign’s money-saving spiel, as well as that the Pound is undergoing mass profit-taking, Sterling may close the day in strong negative rates against its peers, however.
GBP/AUD edged higher on Wednesday afternoon, nearing the pair’s best levels all week as the ‘Aussie’ struggled to hold its ground as iron ore prices plunged.
Investors looking to benefit from the day’s OPEC oil news by buying into some risky currencies looked elsewhere for their gains, as the Australian Dollar’s current selloff looked set to continue.
Despite a better-than-expected private sector credit figure for October the Australian Dollar softened on Wednesday morning, dented by particularly disappointing building approvals data.
With confidence in the strength of the Australian economy faltering the GBP/AUD exchange rate was able to make some fresh gains, in spite of the general mood towards the Pound remaining bearish.
The Pound vs Australian Dollar exchange rate continued to perform strongly on Tuesday afternoon and is likely to hold these gains unless Tuesday night or Wednesday see yet another reversal in commodity news.
If OPEC somehow pulls an impressive oil output cap proposal out of its hat during its Wednesday meeting or if iron ore prices begin to improve again, the Australian Dollar could hold its ground better.
Brexit Memo Dents British Pound
The latest source of support for this pairing was partly the leaking of a Brexit document which was photographed on Downing Street.
The document, which was denied by the Government, showed that single market access is considered ‘unlikely’, and that implementing Article 50 may prove difficult in the start of 2017.
While this paper does show uncertainty among Brexit officials in Government, it has at least reassured investors by showing that the matter is being actively discussed, rather than buried under empty statements.
Latest Pound/Australian Dollar Exchange Rates
On Saturday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
FX markets see the pound vs pound exchange rate converting at 1.
Today finds the pound to euro spot exchange rate priced at 1.16.
FX markets see the pound vs us dollar exchange rate converting at 1.237.
Please note: the FX rates above, updated 20th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
Pound Sterling to Australian Dollar Rate Predicted to Rise if BoE Report Creates Optimism
The Pound has the opportunity to climb against the Australian Dollar (GBP AUD) in the near-term given the UK data that is due out on Wednesday.
Starting off proceedings will be the November GfK consumer confidence figure, which is currently expected to ‘improve’ from -3 to -1.
Out later on Wednesday morning will be the Bank of England (BoE) financial stability report, which could serve to calm investors if it offers a stable outlook for the remainder of 2016.
Australian Dollar Pound Losses Come with Widespread Slump in AUD Demand Today
The Australian Dollar has performed poorly during the European trading session today, sliding by over -1% to hit a rate of 0.59 on the pairing. Elsewhere, AUD demand has dropped off in the wake of an OECD assessment.
The recently published outlook by the OECD hasn’t predicted crisis levels of economic damage for Australia, but has estimated that national growth will remain under 3% until 2018.
In other Australian news, the future cost of iron ore has been thrown into question by mining giant Rio Tinto risking a price war.
This fear has come after the company apparently decided to ask Chinese steel mills to pay a premium cost for the resource for the first time since 2010.
Australian Dollar Outlook: Recovery Possible against GBP if Permits Results Match Forecasts
The Australian Dollar may be set for a recovery against the Pound early on Wednesday, assuming that the October building permits result matches up with forecasts.
On the month, a significant recovery is expected in the field, from -8.7% to 2%. Additionally, the AUD may be in for further support on Wednesday night, given that the AiG manufacturing index for November has a rise predicted.
Outside of these announcements, the continually unstable price of iron ore is likely to be of interest to Australian Dollar investors, given that the commodity is closely tied to Australia’s economic performance.
OCED Overview Highlights Lacking Areas in AU Economy
Returning to the current dampener of Australian Dollar demand, the OECD assessment, the analytical body has included in its statements that for Australia;
‘There is space for fiscal loosening given the low public-debt burden. Returns would be high for accelerated infrastructure development and investing in skills, an area where Australia falls short of top-performing countries’.